The Malaysian Insight

FORMER prime minister Najib Razak played a vital role in the joint venture deal worth RM18 billion (US$6 billion) between 1Malaysia Development Berhad (1MDB) and Aabar Investment PJS – a subsidiary of United Arab Emirates state investment vehicle International Petroleum Investment Co (Ipic), the high court heard today.

Shahrol Azral Ibrahim Halmi, former 1MDB CEO, told the Kuala Lumpur High Court that the deal, inked on March 12, 2013, was Najib’s “baby” and was impossible to have been carried out without his approval. 

The 50:50 joint venture was to invest globally, including the Kuala Lumpur International Financial District (KLIFD), which was later renamed Tun Razak Exchange (TRX). The deal later fell through.

The joint venture agreement was signed between 1MDB chairman Che Lodin Wok Kamarudin and Aabar chairman Khadem Al Qubaisi.

The signing ceremony, held at the Prime Minister’s Office, was witnessed by Najib and Abu Dhabi crown prince Sheikh Mohamed Zayed Al Nahyan.

“Datuk Seri Najib’s actions on this deal was carried out in tandem with those of Low Taek Jho.

“This was because all Najib’s plans and the execution of them, right up to the signing ceremony, was pre-arranged or pre-meditated by him (Low).

“I say this because of the ‘action plans’ and discussions Jho Low had with me and (1MDB’s then general counsel) Jasmine Loo to ensure the ceremony was carried out smoothly,” Shahrol said.

Najib is on trial for four counts of power abuse to enrich himself with RM2.3 billion from 1MDB and 21 counts of laundering the same amount. He faces up to 20 years in prison if convicted.

Prosecutors have also accused the 66-year-old of conspiring with Low to defraud the sovereign wealth fund.

During examination-in-chief this morning, Shahrol told the court that the deal, which was signed just months before the 13th general election on May 5, 2013, represented a strategic partnership between two countries and was considered a government-to-government deal,

“I confirm that the deal was a huge mandate for Datuk Seri Najib to ensure that the co-operation between Abu Dhabi and Malaysia is sealed with the 1MDB-Aabar Investment PJS (deal).

“Datuk Seri Najib’s role in the matter was active and I received instructions and the mandate, which gave me confidence to carry out my duties, which was in-line with Low’s action plans.”

Shahrol, who resigned as 1MDB CEO on March 16, 2013, told the court that the deal was rushed through without proper discussion.

“I now realise that the pattern of leakages from 1MDB from 2009 through 2013 has always been to borrow funds for projects that are ostensibly good for the nation and to siphon some of the borrowed funds.

“Throughout the years, the method used by the perpetrators has been refined and tightened up, in the sense that the talking points and mandated tight timelines for fundraising leave less and less room for discussion at the 1MDB management and board of directors (BOD).

“For example, during the 2009 PSI Joint Venture project, there were some discussions at the BOD on the investment. Contrast this with the 2013 US$6 billion joint investment fund with Ipic that was done solely via directors’ circular resolution and shareholder resolutions.”

Najib is represented by a dozen lawyers led by Muhammad Shafee Abdullah.

Former Federal Court judge Gopal Sri Ram leads the prosecution, while Kuala Lumpur High Court judge Collin Lawrence Sequerah presides. – October 1, 2019.